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The lede item in this week’s Inside Scoop print column is the Chapter 11 bankruptcy filing of Vita‘s LLC, the partnership group for Laura Cunningham‘s would-be Yountville restaurant. But before the sky falls, here’s what it’s not: It’s not a personal bankruptcy and it’s not a Chapter 7 bankruptcy.

This PDF legal document sums up — and sheds more light on — the Vita situation pretty nicely. Going back to 2008, it recaps the backstory of the demolition of the building and how the new construction costs ended up being more than anticipated. Then the economy bottomed out, hence Cunningham and co. were “left in the unenviable position of attempting to renegotiate its lease with the landlord, while at the same time needing to raise additional capital.” Those negotiations proved unsuccessful, leading to the termination of the lease and the landlord’s demand for payment of $2 million for “lost rent and damage to the premises.”

With arbitration looming, this was the play for Vita. The main difference between Chapter 7 and Chapter 11 is that the latter is a restructuring move that, as someone involved in the case says, “gives Vita a chance to look at its options.”

Those options are threefold: 1) find an alternative location and open the restaurant there and pay the creditors in full; 2) negotiate a lease with the existing landlord and open the restaurant there and pay the creditors in full; or 3) neither, and “wind-up” Vita’s affairs and “distribute funds in accordance with Bankruptcy Code priorities.”

· Previously: Vita aborted, at least in its original incarnation [Inside Scoop]